Using the Direct Method For the following question(s), indicate how each transaction described would be classified on a statement of cash flows if the operating activities section is prepared under the direct method. When using the direct method, where is the retirement of bonds payable at their maturity date shown on the statement of cash flows?
A) Operating activity
B) Investing activity
C) Financing activity
D) Noncash investing and financing activity
C
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When he was a twenty-year-old bachelor, Hugh Atwater had different consumer needs than he did when he married at twenty six, fathered twins at twenty eight, and divorced at thirty seven
These changes in Atwater's consumer needs are directly related to changes in his ________. A) reference group B) adoption stage C) family life cycle D) subculture E) microculture
Why is it important to effect timely registration of a security interest?
A) It avoids the need to complete and file a disclosure statement B) It is a pre-requisite to a creditor being able to enforce the debt against the debtor C) It affects the creditor's tax liability D) The order of registration determines the order of priority of creditors E) All of the above
Under the United States legal system, guilt is never presumed by the court
a. True b. False Indicate whether the statement is true or false
The following market information was gathered for the ACME corporation. The common stock is selling for $40.00 per share and there are 100,000 shares outstanding
Retained earnings equal $400,000, preferred stock has 1,000 shares outstanding selling at $120.00 per share, and 500 outstanding long-term bonds are selling for $1,035.00 each. For purposes of estimating the firm's WACC, what are the market value weights of long-term debt, preferred stock, and equity? A) D/V = 11.16%, PS/V = 2.59%, and E/V = 86.25% B) D/V = 10.27%, PS/V = 2.38%, and E/V = 87.34% C) D/V = 10.78%, PS/V = 3.08%, and E/V = 86.14% D) D/V = 33.33%, PS/V = 33.33%, and E/V = 33.33%